What is BIP329?

BIP329 introduces a standardized format for labeling Bitcoin transactions, addresses, and wallet elements such as inputs, outputs, and keys. The goal is to improve interoperability between Bitcoin wallets and software by allowing users to export and import descriptive labels in a consistent way. These labels help users keep track of the purpose or origin of specific transactions, especially when managing large or long-term Bitcoin holdings.

By using a structured JSON format, BIP329 ensures that labeling data can be easily shared or backed up without revealing sensitive information like private keys. This proposal enhances transparency and usability, especially for individuals and organizations managing multiple wallets or complex transaction histories.

BIP329: Labeling in Bitcoin transactions and the impact for Trezor Users

For Trezor Suite users, BIP329 offers several practical advantages. Trezor wallets already support labeling through Trezor Suite, allowing users to add notes and context to their transactions. By adopting the BIP329 standard, these labels can now be exported and imported in a universally compatible format, ensuring that your notes remain accessible even if you switch wallets, change software, or integrate with third-party tools.

This interoperability means that users can:

• Easily back up and restore labels without relying on a specific app or ecosystem.
• Maintain transaction clarity when using multiple wallets or devices.
• Enhance auditing and bookkeeping, especially for businesses or individuals managing multiple accounts.
• Improve privacy and organization, since labels can be stored and shared separately from private keys.

Overall, BIP329 helps bridge the gap between usability and self-custody. For Trezor users, it represents another step toward a more transparent, secure, and user-friendly Bitcoin experience, where personal data like transaction context remains under the user’s control, yet portable across the broader Bitcoin ecosystem.